Rich Parsons said:
When I think of the elderly in this country who decide on medicinces versus food, then I think of poverty. I bring this up because the Baby Boomers who have not saved (* not saying all did not save just some *), and have their incomes decreased in retirement will see a decrease in standard of living, and possible evne poverty by theirs or others definition.
Of course, the REAL reason why elderly are 'forced' to decide between medicine versus food, is the fact that the state of Medicine in the US has produced a situation where new drugs are produced all the time that extend life well beyond what was possible just a few years ago. New advances, however, are expensive. A person in 1960 certainly wouldn't have to make the food or medicine choice....They'd just die, and wouldn't have to make any choice.
So, the 'food/medicine' dilemma is not a result of some insidious plot, but rather, the result of some good advances in medicine. The proponents of socialized medicine, however, see things in overly simplistic terms. 'Medicine too expensive, pharmaceutical companies greedy, must make cheaper'. However, that overly simplisitic mantra fails to understand the reality.
The U.S. pharmaceutical industry has achieved worldwide prominence through research and development (R&D) work on new drugs, and spends a relatively high proportion of its funds on R&D compared with other industries. Each year, pharmaceutical industry testing involves tens of thousands of new substances, yet may eventually yield fewer than 100 new prescription medicines.
http://www.bls.gov/oco/cg/cgs009.htm
One recent analysis suggests that when all relevant economic costs are taken into account, including costs from unsuccessful compounds, an average of about $800 million in R&D spending is incurred for each internally produced new compound reaching the market.
(4) Most new compounds never make it to market, and research costs from the many failures are financed by sales from the few successes.
If competitors could immediately duplicate a new drug, then undertaking the long and costly development process would be unattractive. To entice drugmakers to undertake R&D, sales of new prescription drugs are protected by patents, which give drugmakers exclusive rights to make and market particular products, frequently for 10 to 14 years following FDA approval.
http://www.cbo.gov/showdoc.cfm?index=5406&sequence=0
Meanwhile, while the US produces a highly disproportianate amount of the world's new pharmaceuticals, Canada, often pointed to as a bastion of socialized medicine, produces very little.
Drugs sold in Canada, like cars sold in Canada, are cheaper because Canadians can't afford to pay more for them.
Furthermore, if U.S. lawmakers required drug makers to sell pharmaceutical drugs in America at Canadian or international prices, the likelihood is that prices would rise worldwide toward the U.S. level, since the United States is about half the world market for prescription drugs.
http://www.hooverdigest.org/043/roberts.html
Why is this? Because the US is footing the bill for other nations medical and pharmaceutical cost. The average American is paying for Research and Development costs for pharmaceuticals produced in the US, which are then sold abroad after the fact, mostly to governments who have costs controls....and don't produce new pharmaceuticals anywhere near the rate the US does. If Americans didn't foot the bill, either other nations would have to pay MORE for medicines (and eliminate the benefits of their 'socialized medicine' price fixing) or we'd see far less innovation and production of newer products within the US.
While many see the issue as a victory for the consumer over Big Pharma, legalized drug importation will prove to be bad news for all of us, depriving us of the blockbuster drugs that would otherwise be in our future.
Drugs are cheaper in Canada because international law treats prescription drugs differently from other consumer products. American drug makers are required under a 1994 international treaty to sell their medicines at drastically reduced prices to comply with an importing country's price controls. Any company that fails to do so risks losing its patent protection: its drugs can be stolen or copied. Thus, to comply with this treaty, U.S. companies slash prices for countries with price controls -- including most countries in the developed world. The purchasing countries are supposed to agree not to turn around and resell the drugs back to the U.S. But the pending Senate legislation will make this sell back legal.
http://www.acsh.org/healthissues/newsID.1248/healthissue_detail.asp
The answer isn't as simple as "Force those 'greedy' medical companies to sell cheaper". A disproportionate amount of medicine costs in the US goes right back in to Research and Development of new products.
It's part of the high cost of living longer. If we'd just stay at 1960's or 1980's or even 1990's medical technology, it would be much cheaper.
http://www.pacificresearch.org/press/opd/2004/opd_04-01-22sp.html
Those price controls prevent innovative pharmaceutical firms from reaping free-market rewards anywhere but in the United States. That is one reason why the world pharmaceutical industry, which 20 years ago was mostly based in Europe, has largely relocated to the United States. American manufacturers now account for 7 of the top 10 worldwide best-selling medicines, and 15 of the top 20. This reflects a large and growing disparity in research and development expenditures. In 1990, European pharmaceutical firms outspent American firms on R&D by approximately 8billion euros to 5 billion euros ($7 billion to $4.3 billion). In 2000, U.S. firms outspent European firms by 24 billion euros to 17 billion euros ($20.9 billion to $14.8 billion). Even traditional European firms, notably GlaxoSmithKline and Novartis, have moved many of their most essential operations to the United States.
http://www.weeklystandard.com/Content/Public/Articles/000/000/002/879jlaia.asp
The REAL problem is, however, we are footing the bill for the rest of the world, as the result of another international treaty, who then in turn accuse US of being 'greedy'.....what else is new?